People can find themselves in debt to the IRS for a vast amount of reasons. If you find yourself in this situation and are unable to pay the balance in full then there is help available to you. There are a number of tax debt solutions that you can choose from depending on how much you owe, your financial situation and if you have any penalties in place.
One of these solutions is called Offer In Compromise. If this was accepted by the IRS then you would pay a set amount of money which is much less than your balance. You would pay this set amount then sign a contract guaranteeing that you will pay your taxes for five years. You will need a tax specialist to help you negotiate this contract.
As the IRS need to accept a lower amount of money in these cases very few are actually agreed to. Less than 1% of all who apply for this are accepted. They will only consider it if they believe you will not ever be able to pay the full debt. Due to this you should explore all other options before applying for this.
A tax specialist can also help with Tax Penalty Abatement. This is when you feel you have been given inaccurate or undeserved tax penalties. Tax penalties are added onto your balance when you are in debt to the IRS. As this is done automatically by a computer system sometimes these penalties can be applied in error. The tax specialist will help you to take action against these penalties in order to get them dismissed. You can do it yourself but it can be complicated.
If your debt to the IRS is vastly overdue payment then you could find yourself subject to liens or wage garnishments. This can leave you struggling to support yourself and your family. If you find that this is the case then a tax specialist can help you to apply for a Wage Garnishment Release and depending on your situation could actually halt collections by the IRS.
Another option available to you is an IRS Payment Plan. These can be negotiated on your behalf by a tax specialist. This is a good option for those who are not in the position to be able to make an offer in compromise. There are three options available here. You can apply for an IRS Tax Loan where you take out the loan specifically to pay your back taxes.
You can also ask for a Short Term Payment Extension. The extension can be anything from 10-120 days. You will still be charged interest and late fees with this option. Finally you can apply to pay by installments with a maximum length of 60 months.
No matter how bad your debt is there is always a solution out there for you. It is important to keep yourself informed of your options and what you are eligible to claim. A tax specialist is the best person to ask for advice on this. They can also help you to reach a solution.
One of these solutions is called Offer In Compromise. If this was accepted by the IRS then you would pay a set amount of money which is much less than your balance. You would pay this set amount then sign a contract guaranteeing that you will pay your taxes for five years. You will need a tax specialist to help you negotiate this contract.
As the IRS need to accept a lower amount of money in these cases very few are actually agreed to. Less than 1% of all who apply for this are accepted. They will only consider it if they believe you will not ever be able to pay the full debt. Due to this you should explore all other options before applying for this.
A tax specialist can also help with Tax Penalty Abatement. This is when you feel you have been given inaccurate or undeserved tax penalties. Tax penalties are added onto your balance when you are in debt to the IRS. As this is done automatically by a computer system sometimes these penalties can be applied in error. The tax specialist will help you to take action against these penalties in order to get them dismissed. You can do it yourself but it can be complicated.
If your debt to the IRS is vastly overdue payment then you could find yourself subject to liens or wage garnishments. This can leave you struggling to support yourself and your family. If you find that this is the case then a tax specialist can help you to apply for a Wage Garnishment Release and depending on your situation could actually halt collections by the IRS.
Another option available to you is an IRS Payment Plan. These can be negotiated on your behalf by a tax specialist. This is a good option for those who are not in the position to be able to make an offer in compromise. There are three options available here. You can apply for an IRS Tax Loan where you take out the loan specifically to pay your back taxes.
You can also ask for a Short Term Payment Extension. The extension can be anything from 10-120 days. You will still be charged interest and late fees with this option. Finally you can apply to pay by installments with a maximum length of 60 months.
No matter how bad your debt is there is always a solution out there for you. It is important to keep yourself informed of your options and what you are eligible to claim. A tax specialist is the best person to ask for advice on this. They can also help you to reach a solution.
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